A new challenge for central banks: governments as adversaries

The huge uncertainties hanging over the world economy have left central bankers facing governments whose policies directly counteract their own

Mark Carney
Getty Images

By

Pierre Briançon

August 19, 2019 1:01 am GMT

Pity the central bankers who think they are exploring bold new ways to cure the world economy, only to be accused of spreading dangerous diseases. And who find that those they are trying to help — governments in economic pain — look determined to make their task impossible.

Economists are still debating the rights and wrongs of the response of governments and central banks to the 2008 financial shock and the subsequent euro crisis. But there is no arguing that, back then, both sides were at least trying to pull in the same...